Axis Trustee Services Limited has confirmed the full release of encumbrance over 2,116,884,819 equity shares of Hindustan Zinc Limited, representing 50.10% of the total share capital. The shares, held by promoter Vedanta Limited, were released on May 14, 2026, following the full redemption of debentures issued under a trust deed dated May 10, 2024. This release removes covenant-based restrictions that required Vedanta to maintain a minimum 50.1% stake and restricted the disposal of these shares.

The disclosure was submitted to BSE Limited and the National Stock Exchange of India Limited on July 07, 2026, under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Axis Trustee Services Limited acted as the Debenture Trustee for the arrangement. The total equity share capital of Hindustan Zinc remains 4,22,53,19,000 fully paid-up shares of ₹2 each.

Details of the Release

The release pertains to a non-disposal undertaking classified as "others" under SEBI regulations. Prior to the release, these shares were subject to restrictive covenants ensuring Vedanta retained control over Hindustan Zinc. The full redemption of the debentures on May 14, 2026, triggered the release of all associated encumbrances, including pledge components.

Context of Existing Obligations

While this specific encumbrance has been released, Axis Trustee noted that other existing encumbrances, including pledges and non-disposal undertakings, remain over Hindustan Zinc shares. These are secured for other financing arrangements of Vedanta and its subsidiaries, for which necessary disclosures have been made previously. The release specifically addresses the obligations tied to the Debenture Trust Deed dated May 10, 2024.

Hindustan Zinc Limited reported its strongest financial performance in FY26, with revenue crossing the ₹40,000-crore mark and EBITDA exceeding ₹20,000 crore. The company delivered a net profit of ₹13,832 crore and earnings per share of approximately ₹33, driven by operational excellence and efficient cost management. This performance was highlighted during the 60th Annual General Meeting (AGM) held on June 29, 2026, via video conferencing.

Operational and Financial Highlights

The company achieved its highest-ever mined metal production of more than 1.1 million tonnes and its second-highest refined metal production of approximately 1.05 million tonnes. Hindustan Zinc recorded a 5-year lowest zinc cost of production, excluding royalty, at $959 per tonne. The EBITDA margin stood at around 54%, while the return on capital employed reached an 18-year high of approximately 67%.

Strategic Expansion and Capex Plans

Hindustan Zinc outlined a clear roadmap to almost double its metal production capacity from 1.1 million tonnes to 2 million tonnes over the next five years. To support this expansion, the Board has approved a capital expenditure programme of approximately ₹40,000 to ₹50,000 crore. The Phase 1 capex of ₹17,000 crore was approved in FY26, which includes a 250,000 tonnes per annum integrated Zinc smelter and India's first Zinc tailing reprocessing plant. The company intends to fund this expansion through internal accruals, maintaining a strong balance sheet while continuing shareholder returns.

Critical Minerals and Sustainability

The company is advancing its 'Hindustan Zinc 2.0' strategy to transform into a future-ready energy transition company. It has secured new mineral blocks for potash, tungsten, and rare earth elements, reinforcing its presence in India's critical mineral ecosystem. Hindustan Zinc aims to extend its mine life beyond 25 years through sustained exploration. On sustainability, the company is transitioning towards 70% renewable energy by FY2028 and has launched ambitious sustainability goals for 2030. It remains the only Indian member of the International Council on Mining and Metals (ICMM).